“Federal Reserve leaders do not seem to be worried about the U.S. economy’s weak first-quarter growth, as the jobless rate has already dropped below where they expected it to be at the end of 2018,” Desjardins writes in the note issued Thursday.

It expects the recent upswing in North American bond yields to continue in the coming months and has upgraded Canada’s 2017 growth forecast to 2.6% from 2.4%.

“In Canada, recent events are consistent with our scenario of a first key rate increase in April 2018,” Desjardins says. “In the meantime, the Canadian dollar should stay close to where it is, as widening rate spreads with the United States should be offset by an upswing by oil prices and the waning of some concerns about Canada’s economy.”